Skip to content
Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

CHINA’S CENTRAL BANK RAISES CURRENCY REQUIREMENTS

China’s central bank has raised the proportion of foreign currency commercial banks must hold from 5 percent to 7 percent in an attempt to slow the rising value of the renminbi, China’s currency, which edged up last week to its highest value against the dollar in three years.
The renminbi has gained 11 percent on the buck in the last 12 months.
The tactic, which the bank has not used since the Great Recession, will “strengthen foreign exchange liquidity management,” the bank said in its statement announcing the rule.
The stricture also is designed to tamp down soaring commodity prices and reduce the amount of borrowed money circulating in China’s economy, analysts said, according to the Financial Times
The bank’s new requirement will pull about $20 billion worth of liquidity out of China’s economy, the bank Standard Chartered estimated.
TREND FORECAST: Despite Beijing’s attempts to drive down the value of its currency, which, of course, the central government will do if it rises too high, it may run into difficulties.
As the world economies rebound from the COVID War lockdowns, demand for Chinese-made products will increase, thus driving up their annual GDP, which we forecast will grow about 8 percent. Thus, the stronger their GDP grows, so, too, will its yuan rise in strength.

Comments are closed.